Corporate and International Tax

Indian tax legislative and judicial environment is constantly evolving along with globalization, economic shifts, and operational adjustments. Businesses are faced with a tax regime with greater complexities and challenges, nonetheless moving towards a globally cohesive tax world. Now, more than ever, businesses must have an ongoing system for adapting to and staying on top of these complex changes.

Some of the recent developments in Indian taxation regime include alignment with proposals under the Base Erosion and Profit Shifting (BEPS) project, introduction of the General Anti-Avoidance Rules (GAAR), applicability of tax on gains arising out of indirect transfers of Indian assets, re-negotiation of tax treaties, Income Computation and Disclosure Standards (ICDS), change in tax residency conditions by introduction of the Place of Effective Management (PoEM) concept, etc. The latest among all this is signing of Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).

Additionally, there may be tax impact on Corporates on account of applicability of the new Indian Accounting Standards (Ind-AS) which are a set of standards converged with International Financial Reporting Standards (IFRS).

Further, the Indian government has gradually reduced corporate tax rates and will soon phase out certain deductions including weighted deductions. And lastly, increased focus on the tax compliances by the foreign companies undertaking business in India. The emphasis is now shifting towards enforcing compliance and expanding the tax base with e-governance and digitisation gaining importance. Taxation is also used as a tool to promote investments in identified industry sectors, thereby spurring overall economic growth. As such, understanding the impact of developments in tax and regulatory aspects and strategically using them to the benefit of Indian business activities is becoming increasingly important.

Our national network of experienced tax professionals can assist in resolving various challenges such as keeping abreast with tax regulations, efficiently manage compliances, address uncertain tax positions, among many others. They will provide you with an insight into how to best work with the taxman to meet your business needs and evaluate your company’s tax position to ensure tax compliance, mitigate risks and undertaking transactions in a tax efficient manner.

Our multi-disciplinary tax teams help you in corporate tax advisory and compliance, and building an overall tax strategy.

Corporate Tax Advisory

Corporate taxation is an essential aspect of doing business in India and its importance cannot be undermined.

  • Establishing tax and operationally efficient Indian business presence 
  • Setting up business in the country 
  • Expanding into new business sectors
  • Planning a heavy capital outlay in the existing business
  • Addressing concerns about cash flow and examining tax inefficiencies
  • Ensuring that your tax function is aligned with your business plan
  • Assessing tax benefits provided under the law
  • Assessing the impact of any tax and regulatory changes/ amendments on your business

We can help you develop tax-efficient strategies and manage your tax exposures considering your organization’s business needs. We will keep you abreast of new developments in the Indian corporate taxation arena that affect your business. Our services include the following:

  • Entry strategy from a tax and regulatory perspective
  • Choice of an appropriate form of entity to set up Indian business activities
  • Assistance in entity set up, registrations with the tax authorities, etc.
  • Conceptualising income tax positions and implementing the same
  • Help resolve uncertain tax positions
  • Optimum use of corporate tax incentives in proposed business activities
  • Strategies for profit and dividend repatriation
  • Impact analysis of recent developments like BEPS, GAAR, PoEM, ICDS, Ind-AS etc.

Corporate Tax Compliance

As the complexities of businesses increase, the amount of time spent by professionals in cracking up the law codes increases. However, tax and regulatory systems of even the most developed countries cannot keep pace with the developments across each industry as businesses emerge day by day. These also bring out the requirements for new compliances and the challenges of meeting them every single day. More detailed Income Tax Return forms including disclosures on tax residency certificates and details of foreign assets, and higher penalties for non-/erroneous disclosures require businesses to gear up for efficient tax compliance. Are you there?

  • Tax implications on payments (local or overseas) to a host of parties
  • Addressing your concerns about effective compliance of withholding tax requirements
  • Reporting of multilayered tax issues and transactions
  • Addressing questions from taxmen, including treaty applicability
  • Defending your stands before taxmen
  • Curtailing a significant litigation history
  • Defending a tax authority challenge

We can assist you with the following:

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Contact us

Frank D’Souza

Partner and Leader, Corporate and International Tax, PwC India

Tel: +91 22 6689 1144

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